First-line Lexin received $300 million convertible bond financing from the Pacific Alliance Investment Group

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[abstract] The convertible bond is a seven-year bond with a coupon rate of 2% and a convertible share price of 14 US dollars/ADS. It has a premium of more than 30% on the average price of the past 30 trading days of Lexin.
Tencent News “Front Line” Wang Pan
On September 11, Beijing time, China’s financial technology company NASDAQ: LX announced that it had reached a $300 million private equity convertible bond financing agreement, with investors investing in Asia’s leading private equity investment management group, Pacific League (PAG).
The convertible bond is a seven-year bond with a coupon rate of 2% and a convertible share price of $14/ADS. It has a premium of more than 30% on the average price of the past 30 trading days of Lexin. Goldman Sachs, Bank of America Merrill Lynch and Huaxing served as financial advisers to the deal.
Lexin’s financing shows that investors have long been optimistic about Lexin’s development and will inject strong momentum into Lexin’s new consumption platform strategy. Since this year, around the consumption needs of high-quality and high-growth groups, Lexin’s new consumption platform strategy in three aspects of scenario, finance and equity is building a broader ecological system.
Lexin’s previously unaudited financial performance in the second quarter of 2019 shows that under the new consumption platform strategy, Lexin’s three major advantages in consumption scenarios, financial technology and diversified funding channels have been strengthened. In the second quarter, Lexin households grew strongly by 5.2 million yuan, up 71.7% year-on-year, the fastest growth rate among US-listed financial technology companies in the same period. Revenue has shown double-digit growth for seven consecutive quarters since listing, reaching 2.5 billion yuan.
Based on this growth momentum, Lexin is expected to increase its trading volume from 90 to 100 billion yuan in 2019 to 115 billion yuan, an increase of 74% compared with the amount of 66.1 billion facilitated loans last year.
Lexin has received “buy” ratings from Goldman Sachs, UBS, Huaxing Capital, BNP Paribas, Bank of America Merrill Lynch, Nomura, Star Show and Alletheia Capital. Since the beginning of the year, Lexin’s share price has risen by nearly 60%.
Lexin CEO Xiao Wenjie said: “We are very happy to introduce PAG (Pacific League) as a new investor to further consolidate Lexin’s leading position in the industry and continue to build Lexin’s leading edge in financial technology. Lexin is building a broader ecological system around the consumption demand of high-quality and high-growth people and the new consumption platform strategy in the three aspects of scenario, finance and equity. The Pacific League has very rich experience in investment management, especially in the field of financial science and technology. It has profound research and understanding. It is believed that this is a very valuable win-win cooperation.
Shan Weijian, chairman and CEO of Tai Meng Investment Group, said: “Lexin is the most outstanding financial technology company listed in US stock market. Compared with other enterprises, Lexin has the fastest growth in user size and transaction size, the most stable performance of wind control, and a consistent good reputation in the industry, which is closely related to the first-class management team and prudent and prudent management style of Lexin. As a leading private equity investor in financial services, we firmly believe in Lexin’s business model and development potential.